1,850 jobs are to be cut as part of Microsoft’s ending of its $7.2bn Nokia adventure.
Microsoft acquired the Finnish company in 2013, having previously entered into partnership with the then struggling former giant in 2011. 1,350 of the job cuts will from the Finnish workforce.
Microsoft has now said it will take a $950m charge on the chin as it sells off what little remains of Nokia and its feature phone business and shifts to a model of bringing its services to iOS and Android rather than trying to persuade consumers to opt for a Windows Phone. The company has said, however, that it doesn’t plan to exit the smartphone hardware market completely.
These changes are incredibly difficult because of the impact on good people who have contributed greatly to Microsoft. Speaking on behalf of Satya and the entire Senior Leadership Team, we are committed to help each individual impacted with our support, resources, and respect,” Microsoft’s Windows and Devices head Terry Myerson wrote in an email to staff, as reported by Recode.
For context, Windows 10 recently crossed 300 million monthly active devices, our Surface and Xbox customer satisfaction is at record levels, and HoloLens enthusiasts are developing incredible new experiences. Yet our phone success has been limited to companies valuing our commitment to security, manageability, and Continuum, and with consumers who value the same. Thus, we need to be more focused in our phone hardware efforts.”
With that all said… I used the words ‘be more focused’. This in fact describes what we are doing (we’re scaling back, but we’re not out!), but at the same time I don’t love it because it lacks the emotional impact of this decision. When I look back on our journey in mobility, we’ve done hard work and had great ideas, but have not always had the alignment needed across the company to make an impact.”